I have heard rumors that certain market makers have been shorting this stock, on the expectation that it would drop again quickly.
After all, according to their reasoning, why shouldn't it drop again. There is no new information since the Stanford announcement, so there is nothing to hold it up. In addition, they know many people could be expected to sell the stock to get a tax loss. So, I have been told they were shorting the stock to take advantage of that move, in advance.
The trouble is, the stock hasn't dropped very far or very fast, and is hanging in there fairly well. But now it is the end of the year, and for tax purposes I have been told that they must cover their shorts.
If this is true, then the stock price should rise tomarrow, 12/31, and if they have really been doing significant shorting, and they must now cover, then it could rise significantly.
I guess we shall see what happens tomarrow, but if there is a price rise, it will probably be Market Makers covering.
-=- Fred |
